<B>K-C Mobile Mill Receives Tax Help</B>

Kimberly-Clark's mill in Mobile received $807,000 in tax breaks this week. The money will go toward a $34.8 million project to retool a paper machine, according to the Mobile Register.

The city's Industrial Development Board said saving about 25 jobs associated with the old paper machine were well worth $707,000 in sales and use tax abatements and $100,000 in ad valorem tax breaks over four years.

"This is a move supporting existing industry, to keep jobs, save jobs," said Dianne Irby, board member and chairwoman of the Mobile Area Chamber of Commerce.

The machine upgrade should have no effect on the plant's emissions, but the company still probably will re-file for air permits with state regulators, White said.

Rebuilding machine No. 5 is the latest in a number of upgrades that have come after several years of downsizing at the 1,000-worker tissue mill.

The paper machine project is loosely tied to a second issue the company brought before the board. Kimberly-Clark also asked for and received a two-year extension on incentives for an $50 million investment in paper-recycling equipment.

White said plans for the recycling project were put on hold after the company recently entered a long-term agreement to buy recycled fiber from Mississippi River Pulp in Natchez, Miss.

"Recycled fiber prices went up 58 percent, and we just couldn't wait until they got any higher to nail down a contract," White said. "It takes 18 months to build the recycled-fiber operation, so we had to do something."

Late last year, the IDB granted almost $2 million in tax breaks toward the proposed recycled fiber operation. The year-long window on those abatements was about to close.

Postponing that $50 million project frees up capital the company can use to upgrade the paper machine.